Build a rolling cash flow forecast

01

Lay out expected cash movements

Start with the available cash balance and choose weekly periods that match your planning needs. List expected receipts by the week you expect to collect them, not simply by invoice date. Include planned supplier payments, payroll, rent, financing payments, taxes, and any planned purchases.

Use known due dates and payment history to inform estimates. Mark uncertain receipts and expenses, document assumptions and avoid counting a transfer between your own accounts as new cash. A forecast is an estimate, not a guarantee of payment.

02

Calculate the balance each week

Hypothetical example: starting cash is $10,000. In week one, expected receipts of $4,000 and payments of $7,000 leave $7,000. In week two, $2,000 of receipts and $8,000 of payments leave $1,000. The calculation is opening cash plus receipts minus payments; each week's closing balance becomes the next week's opening balance.

If the week-two receipt arrives one week late, week-two cash would be negative $1,000 instead. That scenario signals a timing gap to investigate; it does not mean the sale has disappeared or determine the business's accounting profit.

03

Update and act on the forecast

Compare each completed week with actual bank movements, explain differences and update the next periods. Add another week as one ends. Review committed payments and realistic collection dates before deciding how to address a projected shortfall.

Discuss options early with the people who can make decisions, including an adviser or lender where appropriate. Keep a base case and a delayed-receipts scenario so the team can see how sensitive cash is to timing.

04

Keep a forecast review checklist

Start each review with the actual available balance and compare last week's expected payments with what cleared. Update dates for invoices with a confirmed dispute or a changed payment commitment. Check upcoming obligations against supplier statements, payroll schedules and financing terms, and identify missing amounts as estimates.

Keep financing proceeds and repayments on separate lines so the forecast shows how much cash depends on borrowing. Avoid treating an unapproved facility as available cash. Record who owns each assumption and when it was last updated, then focus attention on the lowest projected balance and the weeks around it.